Holiday spending to show online surge

Sales shifting toward experiential, travel and services

THE REAL ECONOMY
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October 12, 2016

Without a doubt, U.S. households are on much firmer footing than at any time since 2007 just before the onset of the two-year Great Recession. Incomes increased more than 5 percent last year and that’s been followed by another year of solid growth in job gains, wages and salaries. While retail sales on a year-ago basis likely peaked in June at 6 percent, the condition of the household over the past three years has improved to the point that fears of a dour holiday spending season should be put to rest.

For small and middle market businesses that have tapped into the online ecosystem that supports major retailers such as Amazon, Wal-Mart and Target, the holiday outlook appears to be strong. However, the shift toward experiential, travel and services spending, as well as a steady increase toward online purchases may present a challenge for middle market retailers that haven’t yet adapted.

Meanwhile, John Nicolopoulos, RSM retail practice lead explains how retailers can respond to minimum wage and overtime pressures.

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